Troubling Signs Had Emerged That Portuguese Conglomerate Was Struggling

LISBON—Troubles at Espírito Santo International SA have rocked markets in southern Europe in recent days, but there were signs as early as 2012 that the Portuguese conglomerate was struggling, raising concerns about the oversight of regulators.

In December last year, The Wall Street Journal reported that closely held Espírito Santo International had been increasingly relying on clients of its partially owned bank, Banco Espírito...